‘Bitcoin Pope’ faces up to 10 years in jail for running two crypto scams
|A securities regulator in the United States, the Texas State Securities Board (TSSB), has detected another batch of alleged cryptocurrency scams.
On Sept. 3, Texas Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order against two alleged crypto scam schemes known as Forex Birds and PEK Universe.
The published order names Kumar Babu Bondesi and Darwin Eric Balusek as the alleged operators of the schemes. According to the TSSB, Balusek is also known under the nickname “Bitcoin Pope.”
Operating abroad, the respondents are accused of fraudulent securities offerings tied to foreign exchange (forex) and cryptocurrencies, the authority said. According to the TSSB, Forex Birds was allegedly promising investors earnings up to 11%, with deposits up to $1 million. Forex Birds is also accused of misleading investors by claiming to be registered with a number of authorities in Europe and Australia.
Pek Universe, the alleged promoter of cryptocurrency programs, was promising to earn daily profits for investors — up to nearly 2% per day for 30 days. Both Forex Birds and Pek Universe were not registered to deal in securities in Texas, the regulator said.
According to the official order, the respondents are facing a $10,000 fine or two to 10 years in prison or both. The respondents must request a hearing with the regulator before Sept. 31. As of press time, both Forex Birds and Pek Universe websites are still intact.
The Texas State Securities Board is one of the most active regulators in the U.S. in terms of the crypto industry. The authority is known as the first state securities regulator in the U.S. to enter an enforcement action against a crypto-related firm. In July 2020, the TSSB shut down Mirror Trading International, a multi-level crypto scam scheme operating from South Africa.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.